Export Tax Refund Scheme: The central government has announced a significant relief for the country’s exporters. The “Refund of Duties and Taxes on Exported Products” (RoDTEP) scheme will now be extended until March 31, 2026. The scheme was originally scheduled to expire on September 30, 2025, but has been extended for six months.
What is the RoDTEP Scheme
Launched in January 2021, this scheme aims to refund taxes and duties incurred in the manufacturing and distribution process but not refunded by any other central or state government. In addition to domestic customs jurisdictions, Special Economic Zones (SEZs), Export-Oriented Units (EOUs), and Advance Authorization Holders can also benefit from this scheme. The current rates range from 0.3% to 3.9% and will remain unchanged.
Benefits for Exporters
Indian export organizations have welcomed this decision. FIEO President SC Ralhan said that extending the deadline will facilitate planning for exporters and eliminate uncertainty. He believes this move will not only mitigate current challenges but also strengthen Indian exports in the international market.
Why is this decision important
The global business environment remains volatile. In such a situation, this government decision provides stability and confidence to exporters. The refund of taxes and duties will reduce their costs and increase profitability. In the long run, this could make Indian goods more attractive in the global market.
Disclaimer: This article is for general information purposes only. The information provided here is not a substitute for any legal, financial, or business advice. It is advisable to consult a relevant expert or official source before making any export or tax-related decisions.
